Pradhan Mantri Viksit Bharat Rozgar Yojana: A New Strategy to Leverage India's Demographic Dividend
UPSC Relevance
Prelims: Indian Economy (Employment, Demographic Dividend, Inclusive Growth); Social Sector Initiatives; Government Schemes (PMVBRY, PLI, Make in India); Social Security.
Mains:
General Studies Paper 2: Welfare schemes for vulnerable sections of the population; Issues relating to development and management of Social Sector/Services relating to Human Resources.
General Studies Paper 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment; Inclusive growth and issues arising from it.
Essay: Topics on Demographic Dividend, Employment, Viksit Bharat.
Key Highlights from the News
India's demographic dividend is being leveraged, and the central government has launched the comprehensive Pradhan Mantri Viksit Bharat Rozgar Yojana to increase quality employment opportunities.
This ₹1 lakh crore scheme aims to create over 3.5 crore jobs in two years.
A key feature of this scheme is that it simultaneously encourages both job seekers (first-time employees) and employers (employers).
Scheme Structure:
For Workers: Financial assistance up to ₹15,000 for first-time job entrants (in two installments).
For Employers: An incentive of up to ₹3,000 per month for companies making new hires.
By providing assistance through Direct Benefit Transfer (DBT), the government aims for formalization of employment and integration with social security systems.
Special encouragement to the manufacturing sector will strengthen the goal of Aatmanirbhar Bharat.
Detailed Explanation: Key Concepts
Demographic Dividend:
This is the potential for economic growth that occurs when the proportion of the working-age population (15-64 years) in a country is higher than the proportion of dependents (below 15 and above 64 years).
To turn this potential into a real advantage, young people need access to quality education, skills, health, and employment opportunities.
Formalisation of the Economy:
This is the process of bringing informal sector workers and enterprises, who lack social security benefits or formal employment contracts, into the formal sector.
Benefits: Ensures better wages, social security (pension, insurance), and access to credit.
Social Security:
This is the protection provided by a society to individuals and families to ensure income and healthcare in situations such as old age, unemployment, illness, or accidents.
Direct Benefit Transfer (DBT):
This is an administrative reform where government subsidies and other benefits are directly transferred to the beneficiaries' bank accounts, eliminating intermediaries. This helps reduce corruption and leakage.
Aatmanirbhar Bharat:
This is a scheme aimed at making India self-reliant by reducing its dependence on other countries in critical sectors.
Mains Only Notes
This scheme is a direct policy response to the criticism of India's "jobless growth" and the challenge of transforming the country's large youth population into a productive workforce.
In this era of global economic uncertainties and technologies like AI, creating a robust domestic employment system is crucial for India's stability and growth.
Analysis of the Scheme's Architecture & Challenges:
Pros of the dual-incentive model:
Demand and Supply side push: It simultaneously stimulates both the demand side (makes hiring easier for employers) and the supply side (encourages workers to find their first job) of the labor market.
Push for Formalisation: DBT assistance will help bring more workers and establishments into the formal economy.
Focus on First-time Job Seekers: This provides significant support and confidence to young people entering the job market for the first time.
Boost to Manufacturing: Special emphasis on the manufacturing sector will strengthen the 'Make in India' initiative.
Potential Challenges:
Implementation Challenge: Efficiently implementing such a large-scale scheme nationwide is a major challenge.
Fiscal Burden: ₹1 lakh crore is a large sum. It remains to be seen how this will affect the government's financial situation.
Quality of Jobs: While the scheme will create new jobs, the quality, wages, and stability of these jobs need to be ensured.
Potential for Misuse: Strict monitoring is needed to prevent companies from potentially replacing old workers with new ones solely to obtain subsidies.
Balanced View: The Pradhan Mantri Viksit Bharat Rozgar Yojana is an innovative and comprehensive effort to address India's employment crisis.
Its structure, which incentivizes both job seekers and employers, is commendable.
It aims not only to create employment opportunities but also to formalize the economy and enhance social security.
However, its success will depend entirely on its efficient implementation. A robust monitoring system is required to ensure transparency, prevent misuse, and guarantee the quality of jobs created.
This scheme, if implemented in conjunction with skill development programs, can transform India's demographic dividend into a true national asset.
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